IPPR report warns Big Tech dominance stifles UK business growth

A report by the Institute for Public Policy Research (IPPR) warns that the market dominance of global technology giants is stifling competition and hindering the United Kingdom’s ability to benefit from artificial intelligence. According to polling by Opinium, 79 percent of UK businesses that rely on digital platforms expressed concern that large tech companies use their dominance to limit competition.

Many businesses identified tech market power as a greater constraint on growth than access to finance or talent. The report notes that over one-third of tech-intensive firms have shelved products in the last two years due to the market dominance of major technology companies. Furthermore, 68 percent of surveyed firms stated that switching away from their primary technology provider would be costly, disruptive, or impossible.

The IPPR highlights significant market concentration, noting that Google handles over 90 percent of UK searches, while Microsoft and Amazon Web Services each control between 30 and 40 percent of cloud service spending. The report also criticizes the Competition and Markets Authority (CMA), suggesting that a lack of ministerial support and a shift toward prioritizing inward investment may have weakened the regulator’s ability to enforce binding rules against dominant firms.